Bitcoin prices turned negative on Monday as investors appeared to take profit on an early session rally which saw the popular digital currency hit a five-week high.
On the U.S.-based Bitfinex exchange, Bitcoin fell to $4,400.9, down $3.4, or 0.08%. Bitcoin is about 20% below its recent peak of $4,969 with a market cap of above $70 billion.
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It appeared to break out of its recent lull, rising sharply just shy of $4,500 as investors digested news that Swiss financial regulatory board, Financial Market Supervisory Authority (FINMA) has stepped up investigations into initial coin offerings (ICOs) in Switzerland. The move comes a more than a month after the People’s Bank of China (PBoC) sent shockwaves through the cryptocurrency market, imposing a ban on individuals and businesses from raising funds through ICOs.
An ICO is a means of fundraising via the use of cryptocurrencies in which a company attracts investors by releasing its own digital currency which can appreciate in value if the business is successful.
Other cryptocurrencies followed Bitcoin’s move lower, as Bitcoin Cash fell 0.26%, to $416.73, while Ethereum, the second-largest cryptocurrencies by market cap, lost 2.49% to $296.96.
Volatility in Ethereum is expected to rise as traders await the upcoming Ethereum Byzantium update in October, which could result in yet another split or so-called hard fork in Ethereum. Investors had to contend with volatile trading action during the months leading up to Ethereum’s last major update, which led to hard fork, creating Ethereum Classic.